The transaction is fully taxable to you. Per the S-4
that you received:
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"The exchange of Aetna common shares for the merger consideration pursuant
to the merger will be a taxable transaction for U.S. federal income tax
purposes. Accordingly, an Aetna shareholder that is a U.S. holder (as defined
in “Aetna Proposal I: Approval and Adoption of the Merger Agreement and CVS
Health Proposal I: Approval of the Stock Issuance—Material U.S. Federal Income
Tax Consequences”) will recognize taxable
capital gain or loss in an amount equal to the difference, if any, between
(i) the sum of (x) the amount of cash, including cash in lieu of fractional
shares, received by such U.S. holder in the merger and (y) the fair market
value of the shares of CVS Health common stock received by such U.S. holder in
the merger and (ii) such U.S. holder’s adjusted tax basis in the Aetna
common shares exchanged therefor."
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The transaction details are:
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"Under the terms of the transaction, each outstanding share of Aetna common
stock is being exchanged for $145.00 in cash and 0.8378 shares of CVS Health
common stock. CVS Health is not issuing any fractional shares in the
transaction. Instead, the total number of shares of CVS Health common stock
that each Aetna shareholder is entitled to receive is being rounded down to the
nearest whole number, and each Aetna shareholder is entitled to receive cash
for any fractional share of CVS Health common stock that the Aetna shareholder
is otherwise entitled to receive."
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Tom Young
